Bakers gear up for second bread price hike in 6 months, blame it on import costs – Mozambique

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Bakers gear up for second bread price hike in 6 months, blame it on import costs – Mozambique

1:10 CAT | 23 Mar 2016

Victor Miguel, president of the Mozambican Association of Bakers, says increases in the cost of raw materials will force the price of bread to rise soon.

Miguel said the main difficulty bakers face is that the raw materials they use are imported, making their businesses vulnerable to fluctuations in the international market.

Wheat flour, for example, has risen in price by 25% in recent times, from 1,040 meticais (18 euros) to 1,290 meticais (22 euros) a bag.

“If there is no alternative, of course we will have to raise prices, or close our companies,” Miguel said, pointing out that some operators in central regions of the country have already closed down because of unsustainable prices.

This will be the second price rise in less than six months. In October 2015, a 250 g loaf went up from six meticais (0.12 euros) to 7.5 meticais (0.15 euros), and the 200 g loaf from 4.5 meticais (0.09 euros) to six meticais (0.12).

In 2010, the price rises for bread and other commodities caused riots in Maputo, killing several people in clashes between demonstrators and the police.

Source: Lusa